EUROPE MARKETS: European Stocks Turn Higher As Wall Street Open Approaches

By Steve Goldstein, MarketWatch

European stocks on Monday turned higher in afternoon trade, led by pharmaceutical and food producers.

After losing 2.95% last week, the Stoxx Europe 600 increased 0.52% to 382.19.

Related:JPMorgan says it's time to buy Europe stocks. Goldman Sachs says, not so fast (http://www.marketwatch.com/story/jpmorgan-says-its-time-to-buy-europe-stocks-goldman-sachs-says-not-so-fast-2019-10-04)

The German DAX added 0.51% to 12073.79, the French CAC 40 rose 0.42% to 5511.33 and the U.K. FTSE 100 rose 0.41% to 7184.63.

After a 372-point burst in the Dow Jones Industrial Average on Friday, U.S. stock futures declined, as Bloomberg News reported China negotiators were trying to limit scope of talks (http://www.marketwatch.com/story/china-takes-some-key-trade-issues-off-the-negotiating-table-with-us-report-2019-10-07). Chinese officials haven't responded to the report.

The overall economic backdrop in Europe continues to be a concern. Germany on Monday reported a 0.6% drop in factory orders in August. That was worse than the 0.4% gain expected in a FactSet-compiled economist poll.

Building materials supplier SIG (SHI.LN) slumped 16% after saying a deterioration in U.K. and German trading conditions has "accelerated."

Osram Licht (OSR.XE) shares fell over 4% after ams (AMS.EB) said it didn't get the necessary shareholder approval for its takeover bid to succeed. A rival consortium of Advent International and Bain Capital is trying to buy the German company.

Ams shares dropped 3% in Swiss trade.

"As it stands, we see risks that the Osram share will retreat towards its pre-M&A bids levels unless new announcements are made re a potential new offer/intention of offer," said analysts at Morgan Stanley.

Bayer (BAYN.XE) shares rose 1.4% as Handelsblatt reported a U.S. trial relating to the herbicide Roundup has been postponed until next year, which the newspaper said was a sign the company was pursuing settlements.

(END) Dow Jones Newswires

October 07, 2019 07:51 ET (11:51 GMT)

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